MINUTES OF THE EXTRA AUDIT COMMITTEE MEETING
HELD ON 20th SEPTEMBER 2013
Present:
Martin Nash
Mike Snell
Clare Watling
Peter Adams
Terry Lazenby
In Attendance: Maureen Kilminster
Gail Walker
Paul Edwards
Maggie Wood
Peter Williams
Chairman
Vice-Chairman
Co-optee
Principal
Deputy Principal
Vice Principal
Clerk
Mazars
Item 1
A/9/13/1
ACTION IN EVENT OF FIRE
Action in the event of fire was noted.
Item 2
A/9/13/2
WELCOME AND APOLOGIES
The Chairman welcomed Members to the meeting and Peter Williams
from Mazars. Members NOTED that the purpose of the extra Audit
Committee was to review three internal audit reports.
Item 3
DECLARATION OF INTEREST AND CONFIDENTIALITY OF
PROCEEDINGS
There were no declarations of interest.
A/9/13/3
Item 4
A/9/13/4
A/9/13/5
INTERNAL AUDIT REPORTS RECEIVED
IT Strategy Management – PW presented the report. MN queried the
date of the report and was advised that Mazars had completed the
report in June and responses were received in August – this delay was
due to staff holidays.
Members NOTED the Adequate Assurance and the two significant
recommendations and three housekeeping recommendations. In
relation to 6.1 it was AGREED that the completion date of September
13 be amended to a later date. It was NOTED that the IT Strategy
would support the College’s Curriculum Plan and Property Strategy but
that both of these documents were currently being revised.
Action: PE
A/9/13/6
In relation to 6.2, it was AGREED that the date for completion should
be extended.
Action: PE
A/9/13/7
Members debated whether the response to the recommendation at 6.3
was on-going. It was AGREED it was and Members AGREED to the
completion day matching the date agreed for 6.1.
Action: PE
A/9/13/8
The Chairman asked that the date for the recommendation at 6.4 be
amended.
Action: PE
A/9/13/9
Members discussed the comment at recommendation 6.4 and PE
confirmed this will go to SLT once completed. Action:PE
A/9/13/10
Members AGREED that as four out of the five recommendations
related to the IT Strategy that these be grouped together for the
outstanding recommendations list.
Action: PE
A/9/13/11
General Ledger Audit – PW presented the report. Members NOTED
the Adequate Assurance and the four significant recommendations and
one housekeeping recommendation. Members NOTED that this
particular audit was part of the rolling annual coverage of the College’s
Core Financial systems and that a number of the recommendations
would be implemented when the new Agresso finance system was put
in place.
A/9/13/12
In relation to 6.1, Members asked that the duplicate names and the
names of those staff who had left the College be removed from the
current system immediately.
Action: PE
A/9/13/13
PE advised Members that the Bank Mandate had been located. PW
advised that this had not yet been passed to him. Members asked that
the Mandate be passed to the Internal Auditor and a copy be presented
to the Committee at its next meeting.
Action: PE
A/9/13/14
The recommendations at 6.3 and 6.4 and corresponding management
response were NOTED.
A/9/13/15
Regarding the recommendation at 6.5 – sample testing of journals –
Members debated the responsibility of this. After deliberation it was
AGREED that this should be delegated to junior finance staff with the
Head of Finance overseeing the process and the Vice-Principal
carrying out ad hoc checks.
A/9/13/16
Members discussed the fact that a large number of these
recommendations related to the new finance system and whether there
was the necessity of adding them to the outstanding audit list when
they would not be completed until the system was in place. After much
discussion it was AGREED that the Vice Principal would look at these
recommendations (some of which resulted from the Core audit) and
report to the next Audit Committee the way forward. Action: PE
A/9/13/17
Members discussed the SISSC project and PE advised that the College
was still scheduled to be on board in January. Members were advised
that so far implementation had been under-estimated and as a result
each College had had a 3-4 week delayed implementation date.
Members NOTED that we would be the last College to go live. PE
advised Members that although implementation had been an issue for
the earlier colleges the functionality of the system was good.
A/9/13/18
Financial Planning/Forecasting and Monitoring Annual Budget
Setting and Control – PW presented the report, which formed part of
the rolling annual coverage of the College’s Core financial systems.
Members NOTED that the audit had received Adequate Assurance with
one significant recommendation and two housekeeping.
A/9/13/19
In relation to recommendation 6.1, it was AGREED that PE should
confirm to Members whether or not the Budget Manual had been
updated.
Action: PE
A/9/13/20
PE advised Members that although the recommendation at 6.2 was
agreed in principle, the College was committed to an agreed format of
management accounts as part of the SISSC project and that this format
was still being discussed, therefore he could not confirm whether the
recommendation would be adopted. Members NOTED that this would
be brought back to audit as part of the outstanding recommendations
update.
Action: PE
A/9/13/21
MN sought clarification regarding 6.3 and PE confirmed that the Head
of Finance believed that the College has too many cost centres.
Members NOTED that the new system would reduce the number of
cost centres within the College.
A/9/13/22
Members NOTED the recommendations at 7.1 and 7.2. In relation to
7.3 Members asked the Vice Principal to look at this to see whether this
could be rolled up into the SISSC project.
Action: PE
A/9/13/23
Members NOTED the recommendation at 7.4. and AGREED to close
the recommendations at 7.5 and 7.6 and that the recommendations at
7.7 and 7.8 be rolled into the SISSC project. It was also AGREED that
for recording purposes, the original date be given with the “further
recommended” date noted when transferring to outstanding audit
recommendations list.
Action: PE
A/9/13/24
The Chairman asked that satisfaction surveys be completed as and
when audits were carried out.
Action: PE
A/9/13/25
The Chairman asked that the Committee’s thanks be recorded to the
Finance Team for their hard work throughout the year which had clearly
enabled the College to obtain the assurance it had on its finance
systems.
Item 5
Chairman’s Business
(i)
Review of Committee Business for Emerging Risks
Members AGREED that the risks for the Committee were the
takeover of the external auditors. PE advised that a letter
received from the Auditors was that there would be no
immediate changes in personnel etc.
A/9/13/26
A/9/13/27
Members AGREED that another risk was the delayed
deployment of the SISSC project and asked that updates be
given at future meetings.
Action: PE
(ii)
A/9/13/28
Item 6
A/9/13/29
Any other business
GW advised that the College had recently received an SFA audit
looking at learners’ records. Members NOTED that the audit
had identified minor issues only and it was likely that the College
would receive a clean bill of health. MN congratulated the staff
involved.
Date of Next Meeting
The date of the next scheduled meeting of the Audit Committee is 16th
October 2013.
Chairman ……………………………………………………………….
Signed